This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Analysts' Upgrades, Downgrades: Heinz

Stocks in this article: HNZIPCRHTLD

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety-first" approach to investing aims to reduce risk while seeking outperformance on a total return basis.

We upgraded HJ Heinz (HNZ) to "buy." The company makes and markets processed food products, including, of course, ketchup worldwide.

The numbers: Fiscal second-quarter revenue declined 5.6% to $2.5 billion as net income and earnings per share fell 9.8% to $175 million and 42 cents, respectively. Profitability metrics declined a bit, with the operating margin falling 83 basis points to 13% and the net margin dropping 31 basis points to 6.9%. Heinz has a weak financial position, as reflected by more than $5.1 billion of debt and just $373 million in cash. But the company has proven that it has a resilient business model.

The stock: Heinz has dropped 4% in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500 Index. The stock trades at a low price-to-earnings ratio of 12, offers a high 4.6% dividend yield and has a record of payout increases.

TheStreet.com Ratings

We upgraded IPC Holdings (IPCR) to "buy." The company provides property catastrophe reinsurance to personal and commercial property insurers worldwide.

The numbers: Fiscal first-quarter revenue fell 21% to $85 million as net income and earnings per share plummeted 88% to $8.3 million and 15 cents, respectively. Profitability declined significantly, with the operating margin shedding 6,655 basis points to 14% and the net margin dropping 7,098 basis points to 9.7%. However, IPC has an ideal financial position, with zero debt and $122 million of cash. Despite a difficult quarter, we believe IPC is poised for success and is currently on sale.

The stock: IPC Holdings has fallen 6% in 2009, in line with the Dow Jones Industrial Average. The stock trades at a low 2010 price-to-earnings ratio of 5.71 and pays a 3.14% dividend yield.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,793.93 -21.01 -0.12%
S&P 500 2,067.99 +0.96 0.05%
NASDAQ 4,771.1620 +12.91 0.27%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs